2016 Tax Forms Information
As a shareholder of the Mairs & Power Funds, you may receive the following tax forms:
Form 1099-R: available by January 31, 2017
Form 1099-Q: available by January 31, 2017
Form 592-B State of California: available by January 31, 2017
Form 1099-DIV: available by February 15, 2017
Form 1099-B: available by February 15, 2017
Form 1099-INT: availabel by February 15, 2017
Form 1042-S: available by March 15, 2017
Form 5498-ESA: available by May 1, 2017
Form 5498: available by May 31, 2017
If you have any questions or concerns, please refer to the Tax Guide or contact Shareholder Services at 1-800-304-7404.
2016 Capital Gains and Dividends
The Mairs & Power Growth Fund paid a long-term capital gain of $5.04169 per share and an ordinary income dividend of $0.81103170 per share on December 28, 2016 to shareholders of record on December 27, 2016.
The Mairs & Power Balanced Fund paid a long-term capital gain of $1.08188 per share and an ordinary income dividend of $0.50243839 per share on December 28, 2016 to shareholders of record on December 27, 2016.
The Mairs & Power Small Cap Fund paid a long-term capital gain of $0.38570 per share and an ordinary income dividend of $0.07754332 per share on December 28, 2016 to shareholders of record on December 27, 2016.
The Mairs & Power Growth Fund and Mairs & Power Balanced Fund submitted a Private Letter Ruling (PLR) request to the IRS on August 1, 2016 to change the excise tax year end from December 31 to October 31. Electing to establish an excise tax year end of October 31 would give the Funds sufficient time to more accurately calculate the December capital gain distribution. Click on the below link to learn more about PLRs.
Dividend and Capital Gain FAQ
Q4 2016 Growth Fund Update Recording
Recording - January 30, 2017 Click the link below to listen to Mark Henneman, Growth Fund lead portfolio manager, as he provides insight into the Growth Fund's investment management philosophy, holdings that affected the Fund's return and investment opportunities.
Recording - Q4 2016 Growth Fund Update
Annette Lance and Scott Howard are both registered representatives of ALPS Distributors, Inc.
Mairs & Power's Small Cap Fund Closes to New Investors
Announcement - August 15, 2016
After careful deliberation, Mairs & Power has decided to close the Small Cap Fund (MSCFX/ the "Fund") to new investors effective as of the close of business on September 30, 2016 (the "Closing Date"). The Fund will remain open to investment by existing shareholders, existing Mairs & Power private clients, retirement plans with an existing agreement and new or existing clients of an individual financial adviser representative with pre-existing investments in the Fund.
Mairs & Power Growth Fund (MPGFX) and Mairs & Power Balanced Fund (MAPOX) remain open to new investors.
"With our disciplined, low turnover and long-term investment approach, we hold relatively concentrated positions in a carefully selected portfolio of companies. This strategy means that we manage our asset base carefully," said Mark Henneman, Chief Investment Officer of Mairs & Power, Inc. (the "Adviser"). "We manage capacity for each of our Funds individually, taking a conservative approach that considers, among other factors, total assets under management, the rate of asset growth and the availability of securities that meet the Funds' investment objectives."
"We believe this decision is in the best long-term interest of the Small Cap Fund's existing shareholders, as it allows us to maintain stable and balanced growth with the Fund. We remain confident in our ability to continue to find attractive investment opportunities within the small cap universe and we remain committed to protecting the interests of our Fund's shareholders. This soft close demonstrates that commitment," said Andrew Adams, lead portfolio manager of the Mairs & Power Small Cap Fund.
Launched in 2011, the Small Cap Fund has experienced significant, but manageable, asset flows. The Fund's performance success over one-, three-, and five-year periods led to strong asset growth from both existing and new investors. While this growth has not impacted the Adviser's ability to implement the Fund's stated investment strategy, the decision to close the Fund at this time followed careful deliberation and discussion on how best to serve the interests of existing shareholders by managing asset growth.
Complete guidelines on eligibility to invest in the Fund are available in the Fund's prospectus.
About the Small Cap Fund
The Small Cap Fund seeks above-average, long-term appreciation by investing in smaller companies with attractive business niches and prospects for profitable growth. Like all Mairs & Power mutual funds, the Small Cap Fund focuses the majority of its investments on companies located in the Upper Midwest. Lead portfolio manager Andrew R. Adams and co-manager Allen D. Steinkopf bring a total of 43 years of professional investment management experience to their roles, including a combined 14 years at Mairs & Power.
About Mairs & Power
Established in 1931, Mairs & Power is an independent, employee-owned investment advisory firm with a commitment to pursuing long-term growth. The firm's mutual funds and individually managed accounts are built on the strength and success of carefully selected bonds and quality growth stocks. One of the cornerstones of the firm's equity approach is a regional strategy with heavy representation in stocks of companies headquartered in the Upper Midwest. As of June 30th, 2016, Mairs & Power had over $8.5 billion in assets under management.
If you have any questions or concerns, please refer to the Fund's Prospectus or contact Shareholder Services at 1-800-304-7404.
Barron's - 5 Dividend-Rich Stocks to Hold for the Long Term
Barron's Article - August 23, 2016
5 Dividend-Rich Stocks to Hold for the Long Term - Barron's caught up with Ron Kaliebe, lead portfolio manager of the Mairs & Power Balanced Fund, to discuss his stock-picking methods, his bond strategy and a number of dividend-paying companies he likes.
Barron's Article Disclosure
Mairs & Power has produced two white papers - Why Minnesota Works for Investors and Focused Investing for the Long-Term
January 2017 - Why Minnesota Works for Investors, this white paper describes what we at Mairs & Power have long known; Minnesota and the Upper Midwest present an opportunity-rich landscape for investors.
April 2016 - Focused Investing For The Long-Term, this white paper explores why a low-turnover, buy-and-hold strategy works for investors and in particular how, in the current, short-term focused market, such a strategy may deliver an advantage to long-term oriented investors.
Full Economic Cycle Charts
As a bottom-up fundamental investor, Mairs & Power looks for investments that have "a sustainable competitive advantage" which implies that portfolio holdings will outperform their peers over a long time horizon. When we talk about the advantages of holding through a "economic cycle," the only cycle that is relevant is the economic business cycle fluctuating between periods of expansion and slowing of demand across the economy as measured by Gross Domestic Product growth.
The below charts illustrate the performance of both the Mairs & Power Growth Fund and the Mairs & Power Balanced Fund over five full economic cycles as defined by the national Bureau of Economic Research, measured trough-to-trough, as well as the current period where we are mid-cycle. Each Fund's performance is compared to its relevant benchmark, and in the case of the Growth Fund, with its market index.
These charts illustrate the Growth Fund outperformed its peer as measured by the Lipper Multi-Cap Core Fund Index through every cycle. Both Funds also outperformed their benchmark index in all economic cycles except the 1982-1991 cycle.
The underperformance during the 1982-1991 business cycle coincided with a historic shift in the economy - the dramatic reduction in inflation which had held stock valuations down in the previous cycle. As investors' expectations for inflation came down, there was an across-the-board expansion of stock valuations across the market, resulting in the only period of underperformance to the benchmarks. Both the Growth Fund and Balanced Fund significantly outperformed their benchmarks during the subsequent two cycles.
Chart - Growth Fund Full Market Cycle
Chart - Balanced Fund Full Market Cycle
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the Funds may be lower or higher than the performance quoted. For the most recent month-end performance figures, click here or call Shareholder Services at (800) 304-7404.
Escheatment and Abandoned Property
Mairs & Power Mutual Fund Investor Education on Escheatment and Abandoned Property - June 2015
Escheatment is the process of turning over financial assets considered lost or abandoned property to a state authority. Abandoned property is property that is unclaimed by its rightful owner or his or her heirs. Unclaimed property refers to accounts in financial institutions and companies that have had no activity generated or contact with the owner for one year or longer. States define abandoned property as one of, or a combination of, accounts without activity initiated by the account owner; accounts with an address deemed as undeliverable by the USPS; or uncashed checks. Each state has its own rules concerning abandoned property. The time periods for abandoned property range from three to five years.
It is important to note that abandoned property rules prevents Mairs & Power from recording systematic purchases or redemptions as contact as well as automatic reinvestment of dividends and capital gains.
Please contact Shareholder Services at 800-304-7404 with any questions you have regarding this information. If you have any questions regarding the laws specific to your state of residence, you may visit the National Association of Unclaimed Property Administrators website at www.unclaimed.org for more information.
If you received a notice that your account(s) are subject to escheatment, please perform one of the following:
- Complete the Shareholder Signature(s) section in the notice mailed to you and return the entire letter in the envelope provided;
- Call our automated telephone line at 800-304-7404 and select options #3 and then #4;
- or access your account online at www.mairsandpower.com.